THE APARTMENT GUY | INSIGHT Nº005
The Apartment Guy is a series of practical insights to help apartment buyers understand what to look for, what questions to ask and how to make more informed property decisions.
The apartment upstairs sold for $1.2 million…
So is this one worth $1.2 million too?
Maybe.
But just because two apartments are in the same building doesn’t necessarily mean they’re comparable.
And that can make a big difference when you’re trying to work out what an apartment is actually worth.
Similar isn’t always comparable
Comparable sales are a really useful starting point.
If you’re looking at an apartment, of course you want to know what other apartments in the building have sold for.
I do too, but I’m not simply looking for another two-bedroom apartment and putting its sale price next to this one.
I want to know how comparable it really is.
A floor plan can’t tell you everything
Imagine two apartments directly above one another.
Same building. Similar size. Essentially the same floor plan.
One sits higher in the building with great natural light and an uninterrupted outlook. It may also have superior finishes, fittings and inclusions.
The other might be lower, with a different outlook, less privacy and a more basic level of finish.
On paper, they look very similar.
In reality, they may be quite different propositions.
Are they comparable? Yes, potentially.
Are they the same? No.
And that’s the important bit.
Then there’s the condition of each apartment and what might have happened in the market between one sale and the next.
So when someone says to me “The apartment upstairs sold for $1.2 million.”
Great. That gives me a reference point.
But it doesn’t give me the answer.
I want to know what separates that apartment from the one I’m assessing.
Because that’s what tells me how useful the $1.2 million sale actually is.
Comparable sales are getting more attention in NSW
There's an interesting change happening in NSW this year that makes this even more relevant.
Changes to NSW property laws are putting more emphasis on how comparable sales are used when selling agents determine their price guides, with further changes expected later this year.
Those changes will also introduce a Statement of Information that includes the comparable sales used by the selling agent.
For buyers, more information is a good thing.
But having the sales data and knowing what to make of it are two different things.
It’s easy to get stuck on a number
This is where buyers can get caught.
You find a recent sale that looks almost identical to the apartment you’re considering.
It sold for $1.2 million.
And suddenly $1.2 million becomes the number.
It’s understandable. Once you have a number in your head, it can be hard not to measure everything against it.
But that number is only useful if the sale behind it is genuinely comparable.
That’s why I treat a comparable sale as a reference point, not an answer.
So what am I looking for?
When I’m assessing an apartment for a client, I don’t simply collect a handful of recent sales with the same number of bedrooms.
I want to understand why a particular sale is relevant to the apartment I’m looking at.
And sometimes the sale that seems like the obvious comparison at first becomes less useful once I dig a little deeper.
On the flip side, a sale that doesn’t look like the obvious comparison can sometimes tell me more.
That’s where I need to make a judgement call.
And that judgement matters.
Because finding recent sales isn’t particularly difficult anymore.
There’s plenty of property data available to buyers.
The value is in knowing what deserves weight.
And just as importantly, what doesn’t.
Same building doesn’t mean same proposition
That’s really the point.
The building gives me context.
The floor plan tells me how the apartment uses its space.
A previous sale gives me a reference point.
But none of those things, on their own, determine what the apartment in front of me is worth.
Value sits in the differences.
The outlook. The position. The natural light. The privacy. The inclusions, fittings and finishes. The condition. And what’s happened in the market since the comparable property sold.
My job is to understand which of those differences matter—and what they mean for the apartment I’m assessing
Buy with confidence.
If you’re thinking about buying an apartment in Newcastle, Lake Macquarie or the Hunter, send me a message or book a complimentary call before you sign the contract.
A note on this article: This information is accurate to the best of my knowledge at the time of publication. Property legislation and guidance can change, so always check the most current information and seek professional advice relevant to your circumstances.
Sources
NSW Fair Trading — Making an offer on a property
NSW Fair Trading recommends that buyers research recent comparable sales and avoid relying too heavily on an advertised price guide. It also outlines factors that can influence estimated selling prices, including location, property characteristics, market demand and comparable sales.
NSW Fair Trading — Price estimation and underquoting when selling a property
Current guidance on reasonable estimated selling prices, including consideration of recent comparable sales, location, property features and current market conditions.
NSW Fair Trading — Changes to property and stock agents laws
Information about the Property and Stock Agents Amendment (Underquoting and Other Agent Conduct) Act 2026. Some changes commenced on 29 June 2026, with further reforms relating to comparable sales and Statements of Information expected to commence later in 2026.
NSW Fair Trading — Underquoting guidance for property professionals
Current guidance explaining the evidence agents should consider when determining an estimated selling price, including comparable sales, differences between properties, property characteristics and other factors that may affect price.